Rockwell to spin-off its chip unit

Rockwell to spin-off its chip unit
Tom Foremski
As expected, Rockwell yesterday announced a sweeping reorganisation with plans to spin-off its chip unit and reduce its staff by 3,800 jobs and take a pretax charge of $625m against third quarter earnings.
The Rockwell Semiconductor Systems business, which manufactures modem and communications chips, will be spun off to Rockwell shareholders. The chip business employs 7,000 staff and has projected sales of $1.3bn for fiscal 1998.
“The dynamics of Semiconductor Systems are very different from Rockwell’s other businesses, including its markets, products, and investment requirements. We believe that by taking this strategic step to operate separately, and by allowing each company to focus on its own products and markets, we can unlock greater value for each of these businesses and enhance their ability to achieve their full potential,” said Rockwell CEO Don Davis.
Rockwell will concentrate on its core industrial automation business and will close some facilities and drop non-strategic product lines.

Leave a Reply

Your email address will not be published. Required fields are marked *